NEW YORK, New York - U.S. stocks tacked on to a global rally Friday as interest rates around the world dipped, and financial markets braced for the return of Donald Trump to the White House on Monday. The U.S.dollar finished the day with across-the-board gains.
Friday saw the wave of optimism sweep up the key indexes to solid gains. Investors appeared encouraged by strong corporate earnings and signs of economic resilience, which helped offset lingering concerns about future interest rate decisions.
S&P 500 (^GSPC): The benchmark index climbed to 5,996.66, up 59.32 points. This represented a rise of 1.00 percent, backed by robust performances in the technology and consumer discretionary sectors. Trading volume stood at 2.943B, reflecting steady investor engagement.
Dow Jones Industrial Average (^DJI): The blue-chip index advanced 0.78 percent, adding 334.70 points to reach 43,487.83. Financial and industrial companies led the gains, fueled by upbeat outlooks and stronger-than-expected quarterly results. Volume totaled 551.812M for the session.
NASDAQ Composite (^IXIC): Tech stocks powered the NASDAQ to the day's biggest climb among major U.S. benchmarks, notching a 1.51 percent increase. The index closed at 19,630.20, up 291.91 points, as investors gravitated toward growth-oriented names. Turnover was brisk, with 7.314B shares changing hands.
US Dollar Gains Broadly Against Major Currencies
Friday's foreign exchange market saw the US dollar strengthen against all the major currencies, driven by cautious market sentiment and ongoing speculation about future monetary policy moves. Here's how the key currency pairs performed:
- Euro / US dollar (EURUSD): The pair slipped to 1.0275, posting a 0.20 percent decline. A combination of stronger U.S. economic indicators and lingering uncertainty over the Eurozone's growth outlook weighed on the euro.
- US dollar / Japanese yen (USDJPY): The greenback rose by 0.65 percent against the yen, closing at 156.12. Hawkish commentary from U..S policymakers contrasted with Japan's still-accommodative monetary stance, fueling demand for the dollar.
- US dollar / Canadian dollar (USDCAD): Settling at 1.4465, the U.S. dollar recorded a 0.50 percent advance over the loonie. Softer-than-expected Canadian economic data contributed to the pair's upward momentum.
- British pound / US dollar (GBPUSD): The pound declined 0.52 percent to 1.2170, pressured by concerns over the UK's growth trajectory and the possibility of the Bank of England taking a more cautious approach to future rate hikes.
- US dollar / Swiss franc (USDCHF): The dollar appreciated by 0.48 percent against the Swiss franc, finishing at 0.9149. Switzerland's safe-haven currency typically benefits from market volatility, but ongoing US dollar strength overshadowed those gains.
- Australian dollar / US dollar (AUDUSD): The Aussie dipped 0.25 percent to 0.6196, as investors grew wary of China's demand outlook, a crucial factor for Australia's export-driven economy.
- New Zealand dollar / US dollar (NZDUSD): The kiwi lost 0.35 percent, ending the session at 0.5586. Softer risk sentiment and concerns about global growth prospects weighed on the currency.
Global Markets Close Higher in Europe, the UK, Canada, and Africa; Mixed in Asia
Friday marked a day of gains not only in the United States, but for several major European indices, with investors encouraged by positive economic data and improved corporate earnings forecasts. Stocks also gained in the UK, Canada and South Africa. Meanwhile, the Asian-Pacific and Southeast Asian regions displayed a more mixed performance, as certain markets rose modestly while others lost ground.
CANADA
- S&P/TSX Composite Index (^GSPTSE): In Canada, the main index finished at 25,067.92, gaining 221.72 points or 0.89 percent. Resource stocks and financials contributed to the rally, with total volume at 216.331M.
UNITED KINGDOM
- FTSE 100 (^FTSE): The UK's leading index jumped 1.35 percent, closing at a new record high of 8,505.22, buoyed by strong performances in financial and energy shares.
EUROPE
- DAX P (^GDAXI): Germany's benchmark climbed 1.20 percent to finish at 20,903.39, extending a positive week for industrial and automotive stocks.
- CAC 40 (^FCHI): France's primary index advanced 0.98 percent to 7,709.75, supported by gains in luxury and technology sectors.
- EURO STOXX 50 I (^STOXX50E): The pan-European gauge added 0.81 percent, ending at 5,148.30, with broad-based buying across key sectors.
- Euronext 100 Index (^N100): This index also rose 0.81 percent, closing at 1,518.06, reflecting confidence in Europe's economic outlook.
- BEL 20 (^BFX): Belgium's main index edged 0.37 percent higher to 4,260.19, lifted by strength in consumer staples.
- MSCI EUROPE (^125904-USD-STRD): The broader European benchmark increased 0.41 percent, closing at 2,052.59.
ASIA
- HANG SENG INDEX (^HSI): Hong Kong's Hang Seng inched up 0.31 percent to 19,584.06, aided by moderate gains in tech stocks.
- STI Index (^STI): Singapore's benchmark rose 0.25 percent to 3,810.78, helped by advances in real estate and consumer services.
OCEANIA
- S&P/ASX 200 (^AXJO): Australia's flagship index slipped 0.20 percent to 8,310.40, weighed down by losses in mining shares.
- ALL ORDINARIES (^AORD): The broader Australian market dipped 0.14 percent, settling at 8,557.40.
- S&P/NZX 50 INDEX GROSS (^NZ50): New Zealand's market saw a solid uptick of 1.00 percent, finishing at 13,130.43.
MIDDLE EAST
Most Middle East markets were closed Friday and will reopen on Suns=day.
AFRICA
- Top 40 USD Net TRI Index (^JN0U.JO): South Africa's Top 40 index gained 1.91 percent, settling at 4,381.48.
Currency Market
- US Dollar Index (DX-Y.NYB): The greenback rose 0.36 percent, ending Friday at 109.35, as investors cautiously weighed global interest rate trends.
Despite the varied movements in Asian markets, the U.S., Canada, and Europe's strong showings helped lift overall sentiment heading into the weekend. Investors continue to watch economic data releases and corporate earnings closely, anticipating how upcoming policy decisions from central banks around the world may influence market direction in the weeks ahead.
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